Sorter Company has provided the following data for the third quarter of the most recent year:

Sales $500,000 Fixed Manufacturing Overhead 55,000 Direct Labour 72,500 Fixed Selling Expenses 46,250 Variable Manufacturing Overhead 41,000 Variable Administrative Expenses 48,000 Direct Materials 51,500 Fixed Administrative Expenses 44,500 Variable Selling Expenses 49,750 Assume that direct labour is a variable cost and that there was no beginning or ending inventories.

Which of the following items of Sorter Company's expenses and/or costs can be misleading if reported on a per unit of production and/or sales basis? A. Direct materials. B. Fixed manufacturing overhead. C. Variable administrative expenses. D.Directlabour